What Can Affect My Auto Insurance Premium?

What Can Affect My Auto Insurance Premium?

Your auto insurance premium is influenced by various factors, what are these factors and how do they influence your auto insurance?

You may look at your auto insurance premium and wonder why it is priced the way it is. Are insurance companies out to get you? No! The answer comes back to a demon you thought you got rid of back in high school. Statistical mathematics. Multi-variable probability is utilized in order to determine your auto insurance premium. What are these variables and how is it they can have such a deep impact on your auto insurance premium?

  1. Driving History
    The past will always repeat itself. We see this pattern with geologic and cosmic events like earthquakes and supernovae, respectively, and also see it with humanity. Your driving history tells insurance companies how you may drive in the future and can set a premium based on those probabilistic numbers.
  2. Zip Code of Residency
    All zip codes have their own crime rate; the difference between the two could be statistically insignificant, or it could be like comparing apples and oranges. The higher the crime rate, the higher your premium and vice versa: the lower your zip code’s crime rate, the lower your premium. So even if you move down the street, your premium may be affected.
  3. Car Make & Model
    There are some cars that have certain safety features that can actually decrease your premium. The reason? Our good friend statistics. The safer your car, the lesser your chances are of submitting an injury claim. Your risk factor is lower, thus, you are rewarded with a lower premium.

Regardless of your risk-factor, you need the proper auto insurance to keep your protected. Contact North American Advantage Insurance Services today to secure the right policy to meet your needs, budget, and vehicle in Dallas and neighboring cities in Texas!